Run on the banks

What if all the players decide to withdraw all of there lidens and exchange it for dollars all with in a short period of time.

Within about 20 minutes you'd be able to buy a million linden for a dollar on the Lindex, then wait till everybody comes back and starts buying linden again to continue playing and you'd make a killing.

Wouldnt effect LL or SL at all - LL would continue "printing" linden$ and people would continue playing SL.

Would kill content creators for a few days/weeks until the Linden regained its value.

All of the "banks" in SL would mysteriously encounter network problems and people wouldnt be able to contact them.

Standard week I'd say

The value of the L$ falls.

That brings up an interesting point though, is it possible for someone with sufficent capital to manipulate the entire lindex by buying and/or selling massive amounts of lindens at once.

No.

It was happening a short time ago - yes it is possible.

As long as people are willing to sell "at market prices" all it takes are a bunch of 10,000 L$ entries ( if that ) selling at x,x+1,x+2,x+3, etc etc etc and you can push the lindex down as far as you want.

When you have the price you want you wait for enough people to sell "at market" then cancel all of your orders.

( I know it more complex than that - that is the simple view of it - IMO )

Yes.

I will laugh as the Linden Dollar turns into toilet paper.

If ALL the players decided to sell ALL thier L$, who would be left to buy them?

I think the OP, being new, is not aware that LindeX is just a trding floor, LL doesn't actually buy the L$. Of course I could be wrong.

A feature shutdown the lindex selling option if the value drop to quickly. (never used yet)

I knew they had the feature but I think it would be pretty chilling to the market if they ever had to do it, not to mention probably causing a market crash after it re-opened.

You couldn't, because market orders are executed instantly.

I wonder if that feature is gonna kick in soon the L is moving very fast for a wed. Couple large piles clear and we could see a fast gain in value.

In your dreams... They L$ has flat lined. There isn't enough inflow of willing US$ buyers to push up the valuation of this currency.

LOL!!

I supposed this is just another dead cat bounce.

hehe i knew if i refreshed someone would've beaten me to this

Remember to send me that IM so we can hook up later.

If that cat is actually dead the same must be true of the law of gravity. lol

Well, look who is back. Flat-lined you say? But...that would be contrary to what you were screaming, oh, going on TWO months ago. According to your predictions, the L$ should be around 400:1 right now. I guess if I squint just right that L$292 kinda looks like 400...not.

Nice theory - but I believe wrong - instant doesn't count for anything.

At the moment the sell rate is 292 and the buy rate 305.

Placing enough blocks of currency on the sell to cover all points up to 304 means that you now get your currency at 304/305 when someone sells at market rates.

When that happens my guess is that all of the buy orders between 305 and 310 will disappear and relocate to 310-315.

You can now continue your push of sell up to 309.

This causes panic and soon the 310 buys are relocating as well and the selling is starting to increase - rapidly.
( People want there money now - as has been seen - they are not prepared to wait out a small storm )

Pretty soon you are in the same position we were all in two months ago where the Linden is falling like a stone.

All because someone with a very small amount of change ( less than US$5000 ) decided to play the market.

Yes there is a Linden throttle on the system, but nobody ( except linden ) knows when it will be kicked in , and as mentioned above the market would probably panic crash of its own accord straight after it was removed.

So I stand by my statement that it is entirely possible that a single person with some loose change can influence the market in fairly drastic ways.

Like any other order driven system the Linden could be impacted by smart buying and selling, the same applies (in theory) to any such system. I suggest people who are interested further take a look at the London Stock Exchange and review how the Sets system works for share sales and purchases.

However.....because the Linden dollar is exchangeable for US dollars, anyone trying to do such a trick "could" be potentially sued for fraud if detected. The issue is not with the Linden dollar (which is totally controlled by Linden Labs) but the end product, the US dollar.

And to short circuit anyone who posts the usual about Lindens having no value I would refer you to the legal concept of "fungible value

I agree - that is why the various world markets are policed very heavily to stop any one individual or corporation from attempting to influence them.

As L$ are exchangeable for US$ ( and therefore any currency ) the same should apply - If someone tried it they "could" end up in court.

However because the amounts are so ridiculously small when compared to real markets the only way any such person is liable to end up in court is if they did significant damage to the platform as a whole - or any large business within SL.

And then it would be a ground breaking case ( I don't believe I have read of any similar cases for any other similar environment ) and muck would start flying in all directions when it was shown that there was no policing and no sufficient controls in place to stop such an event happening.

Just my take.

my head hurts

Damn... you guys have WAY to much time on your hands...

Hold on to your hats, fella's ! Here comes 280 ! ! !


Stable dollar is good, you say, RBD, but when it is stable and maintains at 300....then you call it "stagnant", and continue to say that collapse is just a breath away...ever since May. (and probably before) But You were really going wild at 330...about how it was going to 400....and since then....well....it has GAINED 50 points ! <scratching head>

I think maybe someone is really involved in a world better called '3rd Life" because it is not the real world, and it is not THIS one, either !